Deregulation Doesn’t Exempt Marketers: NMDPRA Vows to Prosecute Unfair Trade Practice
CHIGOZIE AMADI
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has clarified that it has no legal authority to fix the pump price of Premium Motor Spirit (PMS), saying fuel prices are determined by market forces under the provisions of the Petroleum Industry Act (PIA) 2021.
In a statement issued by its management, the Authority acknowledged the financial pressure many Nigerians are facing following the recent increase in petrol prices, noting that the impact is being felt by households, transport workers and businesses nationwide.
According to the Authority, while it shares the desire for relief, its responsibility is to ensure a transparent, competitive and properly regulated downstream petroleum market in line with the law.
The NMDPRA explained that Section 205(1) of the Petroleum Industry Act provides that wholesale and retail prices of petroleum products must be determined under unrestricted free market conditions, stressing that the Authority neither fixes pump prices nor issues administrative pricing templates.
It further noted that Sections 205(2) to 205(4) of the Act permit government intervention in fuel pricing only under exceptional situations where a formal declaration of market failure has been made, adding that no such declaration currently exists.
The Authority also pointed out that Section 216 of the PIA empowers it to prevent anti-competitive conduct, including price-fixing, abuse of market dominance and other practices capable of distorting the market.
To guarantee product availability and curb illegal diversion of petroleum products, the NMDPRA disclosed that it is working with the Nigeria Customs Service and other security agencies in a coordinated operation to strengthen surveillance along border routes and combat fuel smuggling.
The regulator stressed that the deregulation of the downstream sector does not free operators from regulatory oversight or compliance with fair trading principles.
It revealed that under its Memorandum of Understanding with the Federal Competition and Consumer Protection Commission (FCCPC), both agencies are jointly monitoring the market to detect and sanction cases of price gouging, collusion, under-dispensing and the sale of substandard petroleum products.
The Authority also announced plans to establish dedicated public feedback and reporting channels through which consumers and industry stakeholders can report irregular pricing, exploitative practices and other market abuses for prompt investigation and enforcement.
Reaffirming its commitment to its statutory responsibilities, the NMDPRA said it would continue to promote energy security, encourage fair competition and safeguard consumers while operating strictly within the legal framework of the Petroleum Industry Act.
The statement was signed by the Management of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
